As the time now is just after 12:00, and as we have a quorum of members present, I would like to call the meeting to order. I declare Allfunds Group PLC's annual general meeting to be open, and welcome you to the meeting. My name is David Bennett. I'm Chairman of the board of directors, and will serve as Chairman of today's meeting. Please allow me to introduce my colleagues. On my immediate right, Juan Alcaraz, Executive Director and CEO. Sitting next to Juan, Lisa Dolly, Independent Director, board Vice Chair, and Chair of the Remuneration, Appointments, and Governance Committee. And on my extreme left, David Pérez Renovales, Independent Director and Chair of the Risk and Audit Committee. Other directors are also attending the AGM, including all those who are retiring and subject to re-election by shareholders: David Pérez Renovales, Sofia Mendes, Andrea Valier, and Axel Joly.
I would also like to introduce Mr. Ali Siddiqui from Deloitte, the company's auditor, and finally, may I introduce on my left, Marta Oñoro, our company secretary. She is going to assist me in the conduct of this AGM.
Thank you, David, and good morning to everyone. Pursuant to Dutch law requirements, let me start by stating that there are 540,394,470 shares and votes present at the meeting, either in person or by proxy. Let me give an outline of this annual general meeting's agenda. First, our CEO, Juan Alcaraz, will provide a brief review of the company's performance and certain key events that occurred in 2023. Then the board Chair will outline the changes to our corporate governance structure, resulting from the review of the Dutch Corporate Governance Code, and we will then move on to take any questions from shareholders before proceeding to a poll on the resolutions. I will now give the floor to the CEO for his review.
Thank you very much, Marta. Good morning, ladies and gentlemen. Welcome to our annual general meeting, 2024. We thank you for your attendance, either in person or remotely. Let me please start my speech by thanking you, each of our shareholders, for the trust you have shown us throughout the year. I'm pleased to give you an overview of the results achieved in 2023, and an outlook on the priorities set for 2024, and how we expect to achieve those. Geopolitical and economic uncertainty has continued throughout 2023. The year began with the global financial system impacted by the intervention of three U.S. banks and one European by the relevant authorities. Allfunds has been confronted with an exceptional complex environment.
However, we need to acknowledge that some of these shocks are starting to unwind, and therefore, we are starting to see some signs of potential recovery that points to a better outlook for the capital markets, as we have witnessed in the first months of 2024. Following a tightening cycle by major central banks, inflation started to ease in the second half of the year. Thanks to our diversification and enhanced value proposition for our clients, we delivered record results, growth, and progress in the consistent execution of our strategy. I would like to take you first throughout our key highlights of 2023, and then dive into the group's outlook for 2024. As the stock markets rallied at the end of the year and inflation began to ease, investor confidence recovered during 2023.
As a result, the European cross-border UCITS industry, which measures the cross-border distribution capacity by asset management companies of mutual funds in Europe, increased by 4% in 2023, according to Morningstar. Allfunds operates in a large and high-growth market. The last 12 months were also positive for Allfunds, as we have continued to capitalize on favorable industry tailwinds, thanks to our scale and diversification, which have enabled us to capture opportunities in this complex environment. Our assets, AUA, have grown by 7% to end near the EUR 1.4 trillion mark, higher than the industry. As a result, once again, we have captured market share. The company has managed to grow consistently in the last 10 years, reaching a 26% market share in the European cross-border UCITS as of December 2023.
We continue to outperform the markets, thanks to our diversification by region, asset class, and by type of distributor. We have managed to outperform the market, thanks to the sustainable secular market growth trends. First, the outsourcing penetration by banks and wealth managers, the growth of open architecture in wealth management, client migrations, share gains from other platforms, diversification across asset class, region, and client type, and thanks to our platform that continues to lead in breadth and level of services, and continues to be the gold standard. Our flywheel effect continues the strong momentum seen in recent years. In 2023, we added 81 new fund houses to the platform and onboarded 53 new distributors. Our client wins keep on consolidating our space as market leader in Europe and globally.
We have managed to gain 1/3 of the new clients from direct competitors, which we believe is a signal of the strong value proposition we offer and continue to build upon. Additionally, another third has been captured by convincing clients to move to the outsourced model. In our effort to better serve our clients, we have continuously improved Allfunds, and in doing so, disrupted the industry. One of our biggest strength is our capacity to make even stronger and more compelling our one-stop shop for our clients. We have also reached deeper into our client base and strengthened our market footprint through the successful execution of our growth strategy. A further key strategic initiative has been enhancing our platform, which includes the launch of the Alternative Solutions platform.
Allfunds launched its Alternative Solutions division in March 2023 to provide clients in the wealth management sector with better access to alternative investments and private markets, and driven by a dedicated industry-leading team. Continuing its private market focus, the company also created its Allfunds Private Partners program, APP, in July 2023 to better support clients' access to private market funds. Allfunds is encouraged by clients' sustained demand for access to alternative products and solutions. To date, we distribute around EUR 6 billion of AUA of alternative products under our new platform to clients across more than 10 key markets. The company remains well-positioned to capitalize on future appetite for alternative solutions and to continue leveraging the strengths of its existing partnership to engage new partners within the APP program.
As part of this improvement, M&A activity has also been one of the highlights of 2023 for Allfunds. We have successfully completed two acquisitions. In the platform space, we acquired the local paying agent business of Iccrea Banca in Italy last December. This is a value-accretive business, which reinforces our ability to service local market customers and strengthens the relationship with an important Italian financial institution. In the subscription-based business, we acquired a majority stake in MainStreet Partners in February, strengthening the company's ability to deliver ESG insights and analytics to our clients and reinforcing our strategy of value-add services in our ecosystem. All of these acquisitions accelerate our strategy and bring recurrent and growth-accretive revenues, and we are very excited about the significant upselling and cross-selling potential they represent, which is the backbone of our strategy for the digital opportunity.
Our M&A strategy has proven successful, and we continue to look into potential opportunities to accelerate this strategy. Allfunds' subscription-based business has delivered good momentum, with an increase in client wins year-on-year and acceleration in the pipeline. Allfunds' tech solutions clients have increased by 27% year-on-year, consolidating its presence in existing markets and entering new ones. Allfunds' data and analytics division has onboarded 22 clients, an 83% increase year-on-year. Investment solutions, including our ManCo services, has increased its presence in different countries. ESG Solutions, via the recently acquired MainStreet Partners, has gained 25 new clients, with the majority of the clients coming from Allfunds' customer base and located in new expansion markets. The pipeline for subscription-based revenues has nearly doubled since December 2022, and is completely diversified by region and product.
Allfunds' market-leading capabilities have been the preferred choice of clients with high-quality global business as part of its strategic focus on expanding their digital offer. After completion and integration of our product suite offering in 2023, we have built the foundations and are ready to deliver strong growth in the coming years. Subscription-based revenues represent 11% of total net revenues, almost halfway to reach the target of 30% of total net revenues in the midterm. This is an ambitious target, but we also feel it is our main strategic goal to become a true wealthtech. In 2023, we delivered strong financial results with continued revenue diversification. I'm proud to say that Allfunds has demonstrated a strong performance, growing AUA, record revenues, and improving profitability. Assets under administration ended the year at EUR 1.4 trillion, a 7% increase since 2022.
Historic record net revenues of EUR 546 million, with a revenue growth rate of 10% year-on-year, with greater diversification. Adjusted EBITDA amounted to EUR 359 million, implying an adjusted EBITDA margin of 66%, in line with 2023 guidance, underpinned by improved operational leverage as the platform continues to scale. A record EBITDA of EUR 319 million, with non-recurrent costs running off in line with expectations, led to an increase by 19% year-on-year. Net profit amounted to EUR 103 million, and shows a 74% increase compared to 2022, due to strong results and the decrease of amortizations. In terms of CapEx, we made a total of EUR 50 million in new investments, mainly to fund growth initiatives, while maintaining best-in-class platform services in the medium to long term.
These investments will deliver a more scalable and efficient business and enhance our customer offering. We remain committed to diversifying our revenues across clients and geographies, too. This is reflected in the contribution of the net treasury income and the strong growth of subscription revenues, which increased a remarkable 47% versus the previous year. We continue to pursue acquisitions that will foster our midterm target of subscription-based revenues, 30% of our total revenues, and this inorganic strategy will also help us broaden our revenues as we broaden our product range. I'm incredibly proud of the results the Allfunds team has achieved in 2023. My focus will be to ensure Allfunds continues to deliver against strategic objectives, reinforcing our position as a leading wealthtech platform.
The investments we have been making, both organically and inorganically, since IPO will translate into meaningful benefits for our clients and for our stakeholders as a whole. Our achievement, achievements in 2023 would not have been possible without the dedication and contribution of each and every one of our professionals. I want to thank each one of the 1,031 employees at Allfunds, who have made possible to build probably the most compelling offering in the street for our clients. Finally, our 2023 results have enabled us to increase the percentage of profits allocated to pay dividends. We have distributed more than EUR 100 million to shareholders in 2023 via dividends and share buyback program. In July, Allfunds announced the launch of a share buyback program of up to EUR 100 million, comprised of two tranches of EUR 50 million.
As part of the company's commitment to delivering value for shareholders, Allfunds completed the first tranche of its share buyback program in December 2023, at which time shares for a total consideration of EUR 50 million had been repurchased at an average value of 6.21 per share. A total of 9.37 million shares were repurchased and then canceled, leaving the share capital at 620,055,702 ordinary shares. This creates value for shareholders by reducing the number of outstanding shares, so that each shareholders get both a larger stake in the company and a higher dividend per share. Today, we submit for your approval a cash dividend of EUR 0.0935 per share, payable from May 2024, as part of a final distribution from 2023 earnings.
The total gross dividend charged to 2023 results will be EUR 58 million, up 4% versus the previous year. As a result, our dividend payout ratio was raised from 25%-27%, including the final dividend proposal that you will vote on today. Our intention is to continue increasing shareholder remuneration as profitability increases, and to continue with the second tranche of the share buyback program we launched in July 2023, in the second half of 2024, as long as circumstances remain the same. Allfunds is unique, it's a unique investment opportunity. We have a unique business model and an extremely attractive investment case in the industry. We continue to be a leading global scale wealth tech, with unparalleled global reach and local presence in 17 offices worldwide.
We are ideally positioned to capture future growth as our total addressable market grows, supported by the penetration of open architecture and outsourcing. Our best-in-class performance is reinforced through our M&A strategy, our revenue diversification towards subscription-based rev business, and the new initiatives we are launching, from blockchain to alternative solutions. This makes our value proposition unbeatable. We keep providing a superior financial profile based on high growth, high margin profitability, low risk, and high cash flow conversion. I would like to highlight some of our key elements to this superior financial profile. Double-digit AUA and revenue growth CAGR in the last 3 years, a stable platform margin above 3.5 basis points, strong diversification ambitions through heavily expanding our subscription revenue base pool, all leading to a strong adjusted EBITDA margin at 66%.
We maintain our expectations to recover the 70% adjusted EBITDA margin over the midterm, as we scale the acquired businesses and reach the operating leverage of the platform business. Our business continues to be highly cash generative, with a pre-tax cash flow conversion of 80%. All thanks to an experienced management team and an entrepreneurial culture that fosters adaptability to the market, focused on the customer and their needs, and innovation. We will continue to deliver shareholder return and value creation, and this will remain the focus in 2024. So moving on to the future and our outlook for 2024, conditions in the macroeconomic context remain challenging in 2024. Inflation remains high, geopolitical uncertainties also remain, but markets expect rates to come down. The discussion is no longer about if rates will go down, but when will that happen?
This is encouraging for our business, and we are starting to experience a good business momentum. Considering the outlook for rates in 2024, I'm convinced that Allfunds is poised for growth, even that we have historically benefited from a low interest rate environment. We expect the return of retail investors' appetite after a period of lower activity, driven by market volatility. We had a good first quarter of 2024. Our assets have increased 7% year-on-year, and we have seen an improved market environment since December 2023. During the first quarter, we are reaching a turning point in flows from existing clients, which hints an anticipated recovery. First, our strong push to client migrations, which are expected to be in the range of EUR 40 billion-EUR 60 billion.
Assuming no incremental contribution from markets, we are guiding to AUA by the end of 2024, between EUR 1.45 trillion and EUR 1.5 trillion. We acknowledge that if early year dynamics carry on, we could see an upside potential from markets, and more importantly, earlier recovery of flows, but we need more evidence. As a result, we expect net revenues to grow at high single- to low double-digits, supported by AUA growth, higher transaction activity after a subdued 2023, and a stable treasury income. We expect subscription revenues to grow at mid- to high-teens. Finally, we continue to focus on our operational leverage, with an intention to at least maintain last year's adjusted EBITDA margin and an ambition to keep improving it towards 70%.
We expect increased investments in digital proposition and IT, representing a CapEx between EUR 50 million-EUR 60 million, especially following our recent partnership with Google. Finally, we will have a significant improvement below the line, with higher cash and capital generation, given significant decrease of adjustments that are expected to amount to a slightly above EUR 30 million. We remain optimistic about the prospects for 2024, and we will achieve all of this, thanks to a clear strategy. Thanks to a sound, long-term, and consistent strategy, we have successfully navigated throughout the most difficult period in the financial markets in the last 50 years. During 2023, Allfunds has continued with its long-term strategy, summarized in the following strategic pillars. First, continued market share gain.
Allfunds has a solid track record in developing business activities in its existing markets and outside its core markets, leading to successful growth of its international market share. We see room for further increased market penetration. Second, perpetuating the flywheel effect. The Allfunds flywheel is at the core of the group's strategy, as the number of fund houses increases, so does the value of the Allfunds platform proposition to distributors, and vice versa. Further expansion and monetization of digital value-added proposition. Allfunds' digital value-added proposition is a key pillar of its strategy to build a fully integrated B2B one-stop shop with management marketplace. Margin resilience: Allfunds believes that it is naturally well-positioned to compensate margin fee pressure, given its global scale and reach, strength of relationship with both distributors and fund houses, its ability to negotiate prices with them, and its independence.
During 2023, Allfunds has started selling alternative investments as a new asset class, which is expected to drive additional growth and margin resilience. Realization of operating efficiencies through scale effects. Well, Allfunds' focus on operating efficiency and associated cost optimizations will remain an integral part of its strategy. Thanks to its scalable platform and the continued investments to improve it, Allfunds is able to onboard new distributors at very low marginal cost. Pursue strategic value accretive acquisitions. Allfunds has proven M&A capabilities with a demonstrable track record of successful acquisitions that have helped accelerate its growth and enhance its platform. Allfunds is highly disciplined, and has a well-defined set of evaluation criteria that it follows in order to maximize value from any acquisition.
In addition, Allfunds seeks to integrate the maximum ESG standards into our day-to-day operations and business development, while collaborating and working closely with our stakeholders group. For that purpose, the company has launched this year our new ESG strategic plan 2026, as the backbone of the new sustainability strategy, with the aim of transitioning from our sustainable commitment ambition to tangible, measurable targets and actions across the short, medium, and long term. With an eye on a closer horizon, Allfunds has established three defined strategic growth pillars that will be its strategic focus in the next five years. One, our leading B2B platform. Thanks to Allfunds' strong flywheel network effect, the company will keep on increasing its shares in current markets, while expanding into new regions. Allfunds has a strong and diversified pipeline, with significant long-term runway.
On the traditional platform business, we believe there are clear opportunities to expand further our global leadership in the main regions in which the company is present: EMEA, America, and Asia. The strategy is based on increasing its market share, consolidating leadership positions, while tapping new markets around the globe. The main drivers will be consolidating our leadership position in core markets, such as Southern Europe, Nordics, U.K., and Middle East. Keep on growing in new markets where Allfunds is underrepresented, such as Germany, France, or Southeast Asia. Capture large opportunities in expansion markets. This is the case of Latin America, but also China and India. Second, the subscription-based revenues. This area is instrumental for our enhanced value proposition. We have increased our subscription revenues by more than 46%, following the integration of latest acquisitions.
To ensure we accelerate the penetration and share of wallet of our client base, we will keep on investing while we reinforce our existing capabilities, both organically and inorganically. We have been successful so far implementing a double strategy of organic growth and selective M&A. This has resulted in achieving an 11% contribution to total revenues, but our ambition is to reach 30% in the medium term. Finally, the Allfunds Alternative Solutions platform. Our Allfunds Alternative Solutions platform was launched just last year. We have been focusing on bringing the best technology enhancements to the alternative space, making easier and more efficient the access to these products. This is a high growth and margin accretion potential opportunity for us, and it fits perfectly with Allfunds' strategy to be a one-stop shop for distributors and fund houses.
In parallel, we launched the Allfunds Private Partner program, a unique way to tap this opportunity. We have brought the top global alternative fund houses, as they consider Allfunds their ideal partner to access this opportunity in Europe and other regions. There is a significant runway based on a large addressable market that we estimate to be around EUR 4 trillion-EUR 10 trillion in the medium term. As closing remarks, I'm confident in that we will continue to deliver robust financial results in 2024. I want to thank all of you, our shareholders, for your interest in Allfunds' continued support on our strategy. I want to thank all of our clients for their trust and loyalty, our employees for their engagement, dedication, and hard work for our customers.
I do not want to end without, again, reaffirming our commitment to all of you, and assure you that our entire team will work tirelessly to win your trust, provide attractive returns, and guarantee that we serve the greatest interests of our customers, shareholders, and society. Despite the disappointing performance in the share price recently, impacted by external factors, I believe our share price does not yet reflect our real value and strengths. I'm convinced that our strategy of sustainable growth and value creation will end up being reflected in the stock price. I will devote all my efforts to achieving this. Thank you once again for your support and for being part of Allfunds.
Thank you, Juan. Let me please refer now to the review of the Dutch Corporate Governance Code, which Allfunds has voluntarily applied since the IPO, and which was amended with effect from the first of January 2023. Our 2023 annual report includes a description of Allfunds' corporate governance structure and the level of compliance with the Dutch code, as well as a summary of the decisions taken and changes made during the year to adapt our corporate governance arrangements to the revised code. These include, among others, the approval of a policy on dialogue with stakeholders, which outlines the principles and guidelines to engage in meaningful and inclusive dialogue with stakeholders in order to embed their interests and views on the sustainability aspects of the strategy and business model.
The assessment by the board, after consultation with the Risk and Audit Committee, of the way in which the internal audit function had fulfilled its responsibilities during 2023, as well as the assessment of this function's performance by an independent third party during 2023. The amendment of the terms of reference of the Risk and Audit Committee to include duties and responsibilities concerning sustainability reporting, and the relations with the external party involved in auditing or verifying this reporting. The approval of a new D&I policy that subsumes the former board diversity policy, and that specifically includes the targets mentioned by the Dutch code. The supervision by an external expert of the board evaluation performed in 2023, and the amendment of the board rules to reflect this recommendation.
The amendments of the internal audit charter to specifically include the obligation of the internal audit function to inform the board and the Chair of the Risk and Audit Committee, or the board Chair, when it relates to the function of directors, without delay, if during the performance of its duties, it discovers or suspects an instance of material misconduct or irregularity. The review of the annual report content to address all new best practice provisions relating to disclosure, the general review of the board rules, and each board committee's terms of reference to adapt them to the remaining revisions of the Dutch code.
In addition to these changes arising directly from the review of the Dutch code during the year, we also strengthened the governance of sustainability matters as follows: We allotted specific duties to the board of directors and each of the board committees with regard to sustainability and ESG topics in order to ensure adequate oversight and full integration of these matters in the group's governance framework. We reviewed a number of existing corporate policies and approved new ones to outline our commitment to sustainable value creation, namely, the ESG policy, which formalizes Allfunds' intention to have a positive impact on society. The policy on climate change management environment, which develops Allfunds' commitment to the environment and defines the principles to improve its environmental performance.
Thirdly, the human rights statement, which sets out our commitment to champion human rights and the key results of a human rights saliency assessment conducted internally in 2023. We approved a board-level and ESG strategic plan for the period 2024 to 2026, with specific targets to be achieved and actions to be implemented in each of the E, S, and G dimensions while doing business, which includes a decarbonization plan, whereby we seek to be carbon neutral by 2030. Other than the above, and some minor adjustments to address minor updates to the Dutch code, the board believes that no further changes were needed to comply with best practice provisions of the amended code from January 1, 2023. Before we proceed to vote on the resolutions, all shareholders now have the opportunity to ask questions regarding the CEO's or my own presentation.
Please note that only shareholders and their duly authorized representatives are entitled to speak. If you wish to ask a question, please indicate this by raising your hand. We will then ask you to come forward to the microphone, an attendant will take your name, and if appropriate, the shareholder you represent, verify your entitlement to speak and introduce you to the meeting before you ask your question. Shareholders' questions will be answered after all shareholders have spoken. Any questions? If there are no questions, we would now like to proceed to the formal business of the Annual General Meeting, as set out in the resolutions contained in this notice. At this point, I wish to advise you that the board believes that the resolutions set out in the notice are in the best interest of the company and the shareholders as a whole.
Accordingly, the board unanimously recommends that the shareholders vote in favor of each resolution.
Some information on voting procedures now. Copies of the notice of the AGM were sent to all shareholders and are available here today. Unless anyone objects, we'll take the notice of the AGM as read. Resolutions one to 11 are proposed as ordinary resolutions. To pass an ordinary resolution, we require a simple majority of votes cast in favor, and resolutions 12 to 15 are proposed as special resolutions and may only be passed with at least 3/4 of the votes cast in favor.
The articles of association of the company provide that a vote will be decided on a show of hands, unless a poll is duly demanded, and further allow the Chair to demand a poll.
For ease of administration, I hereby demand voting by poll. The company secretary is assisting me with counting the votes.
Every shareholder present, in person or by proxy, is entitled to one vote for every ordinary share of which he or she is a holder. If you would like to vote for or against the resolutions or would like to abstain from voting, you must fill in the voting card accordingly.
We now propose that each of the resolutions is put to the meeting. Shareholders attending the meeting have provided us with their voting cards at the beginning of the meeting. Their votes and the proxy instructions received ahead of the meeting have already been counted. The results are as follows:
For resolution one, to receive the annual accounts and reports, 99.99% of the votes cast are in favor of the resolution and 0.01% against it.
I declare the resolution passed.
For resolution two, to approve the final dividend, 99.99% of the votes cast are in favor of the resolution and 0.01% against it.
I declare the resolution passed.
For resolution three, to approve the directors' remuneration report, excluding the directors' remuneration policy, 95.61% of the votes cast are in favor of the resolution and 4.39% against it.
I declare the resolution, advisory in nature, passed.
For resolution four, to approve the directors' remuneration policy, 92.69% of the votes cast are in favor of the resolution and 7.31% against it.
I declare the resolution passed.
For resolution five, to re-elect Sofia Mendes as Non-executive Director, 99.16% of the votes cast are in favor of the resolution and 0.84% against it.
I declare the resolution passed.
For resolution six, to re-elect David Renovales as Non-executive Director, 97.16% of the votes cast are in favor of the resolution and 2.84% against it.
I declare the resolution passed.
For resolution seven, to re-elect Andrea Valier as non-executive director, 97.31% of the votes cast are in favor of the resolution and 2.69% against it.
I declare the resolution passed.
For resolution eight, to re-elect Axel Joly as Non-executive Director, 97.85% of the votes cast are in favor of the resolution and 2.15% against it.
I declare the resolution passed.
For resolution nine, to appoint Ernst & Young LLP as our leader, 99.99% of the votes cast are in favor of the resolution and 0.01% against it.
I declare the resolution passed.
For resolution 10, to authorize directors to determine the auditor remuneration, 99.99% of the votes cast are in favor of the resolution and 0.01% against it.
I declare the resolution passed.
For resolution 11, the authority to allot shares, 96.43% of the votes cast are in favor of the resolution and 3.57% against it.
I declare the resolution passed.
For resolution 12, the authority to disapply pre-emption rights, 99.70% of the votes cast are in favor of the resolution and 0.30% against it.
I declare the resolution passed.
For resolution 13, the additional authority to disapply preemptive rights to finance an acquisition or capital investment, 96.47% of the votes cast are in favor of the resolution and 3.53% against it.
I declare the resolution passed.
For resolution 14, the approval of the terms of the buyback contracts and the authority to purchase own shares of the market, 99.99% of the votes cast are in favor of the resolution and 0.01% against it.
I declare the resolution passed.
For resolution 15, the authority to call meetings except AGMs on short notice, 96.41% of the votes cast are in favor of the resolution and 3.59% against it.
I declare the resolution passed. Ladies and gentlemen, this concludes the formal business of the annual general meeting. I now declare the meeting closed, and I thank you for your attendance and your support. Thanks very much.